Housing Prices Surge in Canary Islands’ Lower-Income Areas
In 2025, housing prices in the Canary Islands’ lower-income neighbourhoods rose by as much as 23.6%, compared to just 12.2% in wealthier areas. This stark difference was revealed in the report “Evolution of Housing Prices in Popular Neighbourhoods of the Canary Islands,” produced by Drago Canarias’ Territorial Analysis and Sustainability Block.
The trend shows a growing disparity. In 2023, price increases were more uniform, with lower-income areas rising by 9.6% and wealthier areas by 8.4%. By 2025, however, wealthy areas saw an increase of just 3.2 percentage points, while popular neighbourhoods surged by 14 points.
This analysis covered the four most populated municipalities: Las Palmas de Gran Canaria, Santa Cruz de Tenerife, La Laguna, and Telde, and there are plans to extend the report to all municipalities in the archipelago.
Drago Canarias attributed this trend to two main factors. Firstly, demand is spreading from expensive central and coastal areas to traditionally affordable neighbourhoods, as rising prices make many homes unattainable. Secondly, speculative interests are shifting towards these less expensive areas, where expectations for profitability are higher.
Carmen Peña, the National Spokesperson for Drago Canarias, highlighted the alarming situation, saying, “We’re not just speculating. There’s a lot of promotional material from real estate agencies openly encouraging investment in popular neighbourhoods like Taco, Ofra, Escaleritas, or La Cuesta.”
Peña stressed the impact on local residents, stating, “Speculation is driving Canarians out of the archipelago, and when it affects popular neighbourhoods, those on lower incomes have nowhere to go.”
In Santa Cruz de Tenerife, housing prices in Ofra soared by 36.45% in 2025, while in other areas like La Salud and Cuesta Piedra, prices rose by 22.39%. In contrast, wealthier neighbourhoods like Avenida Constitución and Palmetum saw increases of only 8.95%.
Similar trends were observed in Las Palmas de Gran Canaria, with La Paterna’s prices climbing 22.15%, while Triana’s rose a mere 8.52%. In La Laguna, prices in Barrio Nuevo increased by 19.40%, while they were up just 9.42% in La Vega, known for its higher income.
In Telde, neighbourhoods like Callejón del Castillo and Las Huesas experienced increases of 19.14% in 2025, significantly outpacing the municipality’s average rise of 8%.
The report’s findings were based on data from the Notary’s Statistical Portal alongside income statistics from the National Statistics Institute (INE), covering the four major municipalities to present a broader view of the housing market. A minor margin of error exists, as some postal codes encompass both low- and high-income areas, but overall, the report accurately reflects housing trends within the archipelago.
